The National Milk Producers Federation is calling on the USDA to purchase up to $ 150 million dollars worth of cheese to help the struggling dairy industry. South Dakota Dairy Association President Marv Post says that type of move would provide some help but isn’t the total answer for the downturn in the ag economy.
He says while dairy is going through a tough time with its lowest prices since 2009 he is confident milk producers will make it through and will survive going forward.
Post says the U.S. dairy industry also relies on exports and there has been a slowdown in global dairy demand that needs to be overcome.
Meanwhile National Milk Producers Federation CEO Jim Mulhern says if USDA were to purchase up to $ 150 million worth of cheese it would remove the equivalent of 900 million gallons of milk from the market and that would boost global on farm income by 16 cents per hundredweight over one year.
